When World War I ended, Serbia, a member of the victorious Entente, finally managed to fulfill its dream of incorporating all Slavic minorities of the now dissolved Austro-Hungarian Empire to one multinational Slavic entity. The country that was originally named 'Kingdom Of Serbs, Croats and Slovenes' came to finally be named 'Yugoslavia' (roughly meaning 'Southern Slavic' in Serbian & Croatian).

During World War II, Yugoslavia sought to remain neutral in the conflict. However, the Italian invasion of Albania and Greece cut Yugoslavia off from any form of non-Axis support. Eventually, Yugoslavia bowed to the pressure from its neighbors and joined the Axis on March 25th, 1941. In response to that deal, a number of anti-German military officers staged a successful coup against the royal government and declared the treaty of entry to the Axis to be void. This greatly angered the German, Italian, and Hungarian governments, all three of which simultaneously invaded on April 6th, 1941 in a response of their own. Within 10 days the Yugoslavian forces surrendered. This rapid defeat was caused by both the poor state of the Royal Army and of the refusal of the Croat population to defend the hated Serb-dominated government. Much of Yugoslavia's territory was annexed by the three invading powers, as well by the Axis-allied Bulgaria. The remaining portion of the country was divided into two satellite states, a Croatian state led by the fascist organization Ustaše, and a Serbian state under German 'protection'.

Popular resistance to foreign occupation was fierce and would only grow as the war went on. The two main resistance groups were the monarchical, and predominately Serbian, Chetniks, and the Communist-led inter-ethnic partisans. By the end of 1941, the Chetniks had lost most of their support and the partisans were in ascendancy. By 1945, the Partisans had formed a new Communist Yugoslavian government led by Josip Broz Tito.

After the surrender of the Axis powers in 1945, Yugoslavia reoccupied all of its prewar territory, with the new addition of the Istrian province (except the city of Trieste) and Italian Dalmatia.

Western Focus / Recognize the Soviet Union branch is the main political branch and the choice of what path the player wants to take, joining either of the main three factions.

Industrialization Program branch builds up the country, gives resources and factories, improves infrastructure and gives the option of focusing more on the main Serbian provinces or improving the country equally.

Modernize the Air Force branch improves the air force and builds military factories for aircraft production. The player can choose between producing their own aircraft or licensing foreign ones from other countries.

Army Modernization branch expands the army and gives bonuses for army research.

Expand the Shipyard branch expands the navy to better protect the homeland and gives bonuses for naval research.

Yugoslavia has most of the 1918 land technologies and early tank tech but is lacking in support. The country is also behind in many early naval and air technologies. Like most minor nations Yugoslavia has three research slots.

Yugoslavia starts without any allies and is not part of any faction. Yugoslavia has a core (and claim) on the Italian-controlled state of Istria.

Yugoslavia, despite its apparent insignificance, does not go unnoticed by the greater powers. Yugoslavia is the target of the German National Focuses "Demand Slovenia" and "Fate of Yugoslavia". The former involves Germany either annexing Slovenia from Yugoslavia or starting a war to take it should Yugoslavia refuse to give it up while the latter involves Germany splitting up Yugoslavia into Croatia and Yugoslavia and annexing both, making one a puppet while annexing the other or puppeting both of them.

If France creates the French Entente Alliance via the National Focus "Little Entente", Yugoslavia is a potential member along with Czechoslovakia and Romania.

With the Death or Dishonor DLC enabled, Yugoslavia starts with Croatian Opposition, Macedonian Opposition, Slovene Nationalism, Serbian General Staff and Anti German Military. Otherwise, Yugoslavia only has Anti German Military.

Croatian Opposition

Stability: -30%

The political representatives of Croatia have been pushing for a federal organization of the Kingdom. Unless their demands are met, they will continue to oppose every move by the central government. They might even launch an uprising if they believe the time is right.

Macedonian Opposition

Political Advisor Cost: +25%

Trade Laws Cost: +25%

Mobilization Laws Cost: +25%

Economy Cost: +25%

The Macedonians have not quite accepted their identity as Serbs and keep demanding special rights. Political support from Bulgaria no doubt plays a role.

Slovene Nationalism

Production efficiency growth: -10%

Slovenes have long since wanted their own state. Although they have accepted our rule, they are not particularly enthusiastic about it. Slovene industrialists rarely invest in local businesses and seem to prefer to spend their money abroad.

Serbian General Staff

Military Leader Cost: +50%

Max planning: +10%

Anti-German Military

Ideology drift defense: +5%

Factions within the Yugoslavian Air Force are opposed to cooperating with Germany. They may attempt to overthrow the regime if the country opens their borders to or enters an alliance with the Third Reich.

Yugoslavia has a small and poorly equipped army. In 1936, it consists of 16 Infantry Divisions, 3 Cavalry Divisions, 2 Mountaineer Divisions, and a Light Tank Division. The Mountaineer division consists of three battalions and the Light Tank division consists of a single tank battalion plus three infantry battalions.